GBP/USD challenges key support levels near 1.2100
With price falling closer towards the 1.2000 handle, the weekly chart offers a better view of how things are playing out right now in cable. For the time being, buyers are able to find support from bids around 1.2100 but also at the 1.2110 level.
The latter sees two important support points in the form of the downside trendline from last August as well as the March 2017 low.
That will be the key spot to watch ahead of the daily/weekly close. Beyond that, further support is only seen closer to 1.2000 with the 2017 low at 1.1986 also set to come into focus.
For the remainder of the week, there are still key risk events that could impact price action further in the pair. Sellers will be looking towards a more dovish BOE to reaffirm the momentum to the downside later today but let’s see if the central bank will offer them a bone.
Meanwhile, on the dollar side of the equation there’s also US manufacturing PMI data before the US non-farm payrolls report tomorrow. Those will no doubt still play into Fed rate cut expectations and impact cable somewhat.
Hence, look towards the key risk events above for any gauge of further momentum to the downside in cable to break the support levels highlighted above.